The book's goal is to teach readers to create startup companies in which to sell creative—or unique—
ideas and products. Peter Thiel distinguishes between horizontal progress, which copies what already
works, and vertical progress, which offers new products and strategies. Chapter 1 explains how
globalization, or the spread of old technologies around the world, has become the standard for the
modern era. He advocates a return to invention and creation.
Chapter 2 is a case study of how the dot-com frenzy in the late 1990s—and the crash of the optimistic
investment "bubble" in 2000—taught entrepreneurs to avoid risks and to imitate their competitors.
Successful businesses don't engage in competition with other businesses offering similar products.
This competition prevents all involved from making a profit. Instead, thriving businesses are creative
monopolies, or companies so good at what they do that they naturally eclipse their competitors.
Monopolies also benefit consumers by offering completely new products and services.
A promising creative monopoly starts small by targeting a limited niche market and planning to
"scale up" for increased cash flows in the future. Being the "last mover," or final innovator, in a
specific market ensures profits for decades.
Solid companies also require planning. In Chapter 6 Thiel emphasizes the importance of "definite
optimism." He offers the historical example of the 1950s and 1960s in the United States, a time of
invention and progress, as a model for the future. Chapter 7 counsels investors and inventors to
remember the "power law," or the idea that a small number of causes create most of the effects in
nature and society. Only a few startups in an investor's portfolio will have the "power" to perform
dramatically better than all the others combined.
Building a Promising Startup
Next Peter Thiel moves on to more specific advice about creating and maintaining a company.
Founders should determine their company's purpose by figuring out a secret, something no one else
knows or will openly discuss. Discovering an unknown or unsuspected idea will give the startup a
unique vision and lead to progress in society. Founders should then build a team of trusted, like-
minded individuals who share a commitment to the company mission.
Sales and distribution are the next crucial steps. Chapter 11 emphasizes the importance of good
salespeople. It also describes the techniques for different levels of sales—from complex transactions
to viral marketing.
Looking Ahead
As startups plan for the future, they should think of computers as assets, not rivals. In Chapter
12 Peter Thiel imagines how businesses can combine the decision-making capabilities of humans
with the data-processing skills of computers.
To synthesize the points in the rest of the book, Chapter 13 provides a case study of failed cleantech
environmental startups in the early 2000s. Thiel offers seven crucial business questions the cleantech
leaders failed to consider. On the other hand, Tesla, an electric car company started by
entrepreneur Elon Musk (b. 1971), answered each question correctly and thrived.
Chapter 14 discusses the unique role of startup founders such as Steve Jobs (1955–2011) and Bill
Gates (b. 1955) in the cultural imagination. Thiel advises potential founders to be role models and
inspire their employees to great achievements.
Finally, Thiel encourages readers to imagine a bright future, one in which humans use technology to
improve their lives in previously unimaginable ways.
